Record EBITDA and net income in the first half
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PRESS RELEASE June 1, 2021
|Results for the first half of 2020-2021
Record EBITDA and net income in the first half
|EXEL Industries (M €)||H1 2019-2020||H1 2020-2021|
|Recurring EBITDA *||8.1||31.8|
|CURRENT OPERATING PROFIT (CURRENT EBIT)||(1.1)||20.9|
|Net financial income / (expense)||(6.2)||0.3|
|Tax and share of partners||(0.2)||(6.7)|
|NET PROFIT / (LOSS)||(36.4)||14.3|
|NET FINANCIAL DEBT||(156.0)||(119.1)|
* Recurring EBITDA = current operating income (EBIT) + depreciation of non-current assets + change in provisions (excluding provisions on current assets) + share of profit from associates
|1st half revenue in € m||2019 – 2020||2020-2021||Value change||Switch %|
|Reported||Reported||Reported||* Alike||Reported||* Alike|
|Sugar beet harvesters||31.8||33.2||1.4||2.1||4.4%||6.7%|
|Garden watering and spraying||39.3||59.6||20.3||21.1||51.7%||53.7%|
|EXEL Industries Group||314.3||385.2||71||69.1||22.6%||22%|
* at constant scope and exchange rates (LFL) = at constant exchange rates and scope
First semester 2020/2021 turnover of 385.2 million euros confirmed a strong upturn in activity resulting in growth of 71 million euros (+ 22.6%). Like-for-like sales amounted to € 383.4 million, representing organic growth of 22%.
This performance follows a clear upturn in activity in Q1 (+ 19.4%) which increased in Q2 (+ 24.5%). The first containment in the second quarter of the 2020 calendar year resulted in the abrupt closure of the points of sale, which mainly affected the activity of spraying and watering the garden and, to a lesser extent, the activities agricultural.
All regions are showing growth, in particular Europe and Africa, but also Asia-Pacific where Sames Kremlin has significantly increased its sales. The Agricultural Spraying business in North America also recorded strong sales. Exchange rate fluctuations weighed on sales by 9.3 million euros.
Reported recurring EBITDA amounted to € 31.8 million (8.2% of revenue), up € 23.7 million compared to 2019-2020.
- In terms of direct margins, all the businesses benefited from the growth in sales volumes combined with a mix effect resulting from the growth of accretive activities such as spraying and watering of gardens and industrial spraying.
- Finally, the measures taken to lower the break-even point and reduce marketing and travel costs translate into almost stable costs, despite the increase in variable costs.
Net income amounted to 14.3 million euros, an increase of 50.7 million euros.
- the exceptional net loss (€ 0.2 million) was no longer affected by restructuring costs. As previously announced, the very uncertain macroeconomic environment of 2020, linked in particular to the health crisis, has led us to raise the general level of risk taken into account for asset impairment tests. This results in an impairment of goodwill of 25.9 million euros on Agricultural Spraying plus 2.1 million euros of additional depreciation on inventories of machines and 0.9 million euros in expenses. non-recurring.
- The financial result amounts to 0.3 million euros, boosted by € 2.2 million in foreign exchange gains which offset the cost of debt. In 2019-2020, the exchange losses in the first half of the year reduced the net financial items by € 4.4 million.
- Finally, we recorded a tax charge of € 7 million against a tax charge close to zero the previous year.
Net financial debt as of March 31, 2021 amounts to 119.1 million euros, compared to 156 million euros on the same date last year. This change reflects the improved conversion of revenue growth to cash flow.
As a reminder, we closed the 2019-2020 financial year with a net debt of 87 million euros. Given the cyclical nature of our activity, the working capital requirement at March 31 represents the high point of the year, mainly due to the constitution of depleted stocks during the second half of the year. H1 2020-2021 being a year of strong recovery, the cash outflow was limited to € 32.1 million.
The EXEL Group is currently refinancing some of its credit lines by extending their maturity in order to support operating and, where applicable, external growth needs without negatively impacting the structure of its balance sheet in the long term.
The order book is now larger than at the same time last year. However, we remain cautious about extrapolating first half growth to the rest of the year. The postponement of invoicing from H1 to H2 2019-2020 (COVID effect) makes the comparison more delicate.
Our order book was inflated by the favorable trend in agricultural commodity prices in recent months, government support measures (USA, Australia, France and Germany) and the suspension of customs duties on French wine by the USA (400 million euros loss per year). Frost damage is expected to have a limited impact on viticulture but a more pronounced effect on the arboriculture segment. The price of steel has gone up and we revise our prices on a case-by-case basis. At this point, there are no critical issues related to the shortage of electronic components.
The order book is now larger than at the same time last year. This is the direct result of the action plans put in place to develop the Terra Variant range in manure spreading and anaerobic digestion, and international sales of sugar beet harvesters. Beet prices are on the rise but last year’s yields were hampered by viral yellows and the subsequent harvest to a lesser extent by frost.
- GARDEN SPRAYING AND WATERING
Our current order book is higher than the previous year. We have set up with customers a policy of anticipating orders and deliveries in order to replenish stocks and meet customer demand. While the sales trend remains strong so far, this activity is highly dependent on spring and summer weather conditions. In addition, for several months, the plastic raw materials market has been tight both in terms of price and availability.
The strong momentum in the furniture industry continues to reflect changes in consumer habits (DIY, home renovations, etc.) which are driving sales. However, the recovery of the automotive sector remains fragile, despite a clear recovery in Asia, while elsewhere the outlook remains uncertain due to problems with deliveries of electronic components.
EVENTS TO COME
June 1, SFAF meeting, first half results
July 27, Q3 sales
About EXEL Industries:
The core business of EXEL Industries is agricultural and industrial spraying. The Group is also present in the market for consumer watering products and in sugar beet harvesters. The objective of EXEL Industries is to develop in its markets through a policy of constant innovation and a strategy of international growth. EXEL Industries employs more than 3,000 people in 27 countries and five continents.
Euronext Paris, SRD Long only – compartment B (Mid Cap)
EnterNext© PEA-PME 150 index (Mnemo EXE / ISIN FR0004527638)
The SFAF presentation is available on the website www.exel-industries.com
Managing Director of the [email protected] group
CFPO / Investor Relations. Phone: 0682258104
PRESS RELEASE 2020-2021 half-year results EXEL Industries def_EN_ok